Avanti Finance aims to leverage Tata Trusts’ social sector presence to provide affordable, timely and customised credit to the unserved; returns will be ploughed back into philanthropy
Mumbai : Ratan Tata, Dr Vijay Kelkar and Nandan Nilekani have come together to establish a technology-enabled financial inclusion vehicle, Avanti Finance, which will be focused on delivering affordable and timely credit to under-served and un-served segments in India.
The aim is to leverage on the social sector presence of Tata Trusts and other like-minded partners and the rapidly-evolving India Stack (Jan Dhan – Aadhar – Mobile), UPI and payments bank ecosystem. Avanti would use this ecosystem and will innovate on product design in consonance with the indigenous needs, to deliver seamlessly for the end consumer.
The promoters strongly believe that the institutional inequalities and information asymmetries are depriving the target customer segment of access to affordable credit. The target customer segment over the last few years has displayed very low delinquency rates compared to any other customer segment, but still is charged the highest rate of interest. Avanti's primary objective is to make a difference in this sphere thereby enhancing the prosperity in these communities.
Ratan Tata, Chairman of Tata Trusts has been actively engaged in several initiatives of the Tata Trusts since his retirement. His endeavours in the last few years have been focussed on creating a sustainable model for interventions which have lasting impact on communities, especially the under-privileged and the deprived.
Both Mr Tata and Mr Nilekani are bringing their investments from their respective philanthropic capital, and any gains will be reinvested in philanthropic causes. Avanti will apply for registration to the Reserve Bank of India in the coming days.
The founding directors of Avanti are Ratan Tata, Dr Vijay Kelkar, Nandan Nilekani and R Venkataramanan. A senior leadership team with Experience Technology, Microfinance, Enterprise Risk Management, Credit Operations and Customer Service, Leadership and Strategy Consulting, Structured Finance and Investment Banking is in place.
Speaking on the occasion, Ratan Tata said, "Avanti will be a platform to impact the poor through credit at individual and community levels to create a lasting improvement in their livelihoods and standard of living, ushering prosperity. I am thankful to Dr Kelkar and Nandan for agreeing to be part of this purpose driven initiative".
Dr Kelkar stated "Access to credit at an affordable cost is still a challenge. I am honoured to be part of Ratan's initiative that leverages on the Tata trusts' rich legacy and aims to make a significant shift in achieving financial inclusion to the common man".
Nandan Nilekani stated "I am humbled by Ratan's initiative and his inviting me to be a part of this venture. My participation in Avanti is more driven by social motivation rather than anything else – with a view to serve the underserved and unserved and make the Tata Trusts and other likeminded partners philanthropy more effective. Technology is an important differentiator and allows us to make a difference in many ways than one".
Avanti will establish operations before the end of the financial year.
About the Founding Directors:
Ratan Tata is currently the Chairman of Tata Trusts, the principal shareholder of Tata Sons, the parent company of the Tata group. Tata Trusts has been at the forefront of creating institutions and supporting innovations that addresses various social problems in the society. The Trusts are spread over 17 states and 170 districts across the country; the programmes supported by the Trusts reach over 15 million people through efficient network of 450+ partner organisations. It identifies availability of timely credit at affordable costs as a sustainable tool to initiate financial inclusion and financial literacy.
Dr Vijay Kelkar – Dr Kelkar is currently the Chairman of the National Institute of Public Finance and Policy (NIPFP), and India Development Foundation, New Delhi. He was the Chairman, Forum of Federations, Ottawa from January 2010 to March 2013. He was the Chairman of the Finance Commission in the rank of a Union Cabinet Minister until January, 2010. Prior to this, he has held various senior level positions in Government of India (GOI) as well as in international organisations including Executive Director for India, Sri Lanka, Bangladesh and Bhutan at the IMF from August, 1999 to August, 2002; Finance Secretary, GOI, 1998–1999; Chairman, Tariff Commission, GOI, 1997–1998: Secretary, Ministry of Petroleum & Natural Gas, GOI, 1994–1997; Director & Coordinator, International Trade Division, UNCTAD, Geneva, Switzerland, 1991–1994; Chairman, Bureau of Industrial Costs & Prices and secretary to the GOI, 1987–1991; Secretary, Economic Advisory Council to the Prime Minister, GOI, 1985–1988.
Mr Nandan Nilekani is a co-founder and former CEO of Infosys and former Chairman of the Unique Identification Authority of India, which has given over a billion Indians the unique identity called Aadhaar. He is a firm believer in the role of technology in transformation as expressed in his book 'Imagining India' and as a co-author of 'Rebooting India.' He is currently the Chairman of EkStep, a collaborative smartphone-based societal technology platform to provide learning opportunity to millions of children.
R Venkataramanan is currently the Managing Trustee of Tata Trusts.
About Tata Trusts:
Tata Trusts is amongst India's oldest, non-sectarian philanthropic organisations that work in several key areas of community development. Since its inception, Tata Trusts has played a pioneering role in transforming traditional ideas of philanthropy to make impactful sustainable change in the lives of the communities served. Through direct implementation, co-partnership strategies and strategic grant making, Tata Trusts support and drive innovation in the areas of education; healthcare and nutrition; rural livelihoods; technology, natural resources management; enhancing civil society and governance, media, arts, crafts and culture. Guided by the principles of its Founder, Jamsetji Tata and through his vision of proactive philanthropy, Tata Trusts catalyse societal development while ensuring its initiatives and interventions have a contemporary relevance to the nation. For more information please visit http://tatatrusts.org/
For further information, please contact:
Vinod Moorthy
Email: Vinod.moorthy@edelman.com
Deepshikha Surendran
Email: dsurendran@tatatrusts.org
Manish Thakkar
Email: manish.thakkar@rntassociates.com
